Xero and electronic payment processing options
For clients that will use invoices as the primary method of billing, there are quite a few options for that are better than “the check is in the mail” (spoiler alert, it never is). All of the payment processors below will work with Xero to varying degrees and only IntegraPay offers a solid balance between easy to use, price, and functionality.
Stripe – International payment processing company that uses Wells Fargo as a gateway. Stripe is easy to use, sync’s with Xero, and works best when invoices are sent out and expected to be paid through the “Pay Now” button via credit card or ACH. Stripe offers the standard next day deposit on debit/credit collections at the standard rate of about 3% fee. ACH transactions take 5 business days and cost a maximum of $5 per ACH. No monthly fees and easy to set up. A major drawback is the inability to schedule payments based on dates and a little goofy to customize some other functions.
Paypal – We recommend getting a PayPal that is linked to your business account and only using it as a last resort. PayPal does not work well with any accounting platforms and has terrible website navigation. Have it, but as a last resort. Other than Stripe, best for international transactions.
Square – Best for retail point of sale or Ecommerce checkouts. Square does not play well with any accounting platforms, although they do offer better rates and cheap credit card processing hardware. The company’s CEO is tied very closely with the platform and its survival might depend on the CEO being replaced. No monthly fees for invoicing and payment processing, but lacks substantial and useful integrations with other software. Square is currently losing its market dominance due to the lack of development and integrations with other software.
IntegraPay – Our favorite and most recommended payment processing platform. The monthly fee is low (under $50) and the ACH transaction cost is $0.65 per transaction. Credit/debit processing costs are comparable to Stripe and Square. IntegraPay integrates fully with Xero and offers a solid, simple subscription/retainer payment process. IntegraPay does require a credit check and they may place some restrictions on the transaction dollar amounts or deposit window. However, the best part of IntegraPay is that the payments are deposited as gross amounts and fees are collected monthly at the end of the month, which is why there is a credit check. If your customers/clients will accept the ACH payment offering, IntegraPay excels at ACH processing and makes it easy for everyone involved. If you have a mix of credit and ACH payments, IntegraPay will cost about 40-60% less in fees than Stripe.
Other options are Plooto, Bill.com, and Authorize.net. Of those three, Bill.com is an amazing platform at a little higher cost but does not really make sense to use for invoicing only. If your company was going to have a lot of bills to pay and overhead costs to manage, then Bill.com would be the best choice. Something to consider as your company grows and you have an employee or two.
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